Talanx generates record H1 net income of EUR 1,373 million and raises net income forecast for 2025

“The first half of 2025 has shown that our diversified structure and focused strategy are paying off”, said Torsten Leue, Talanx AG’s CEO. “Despite high large loss payments in the first quarter, we generated record net income in H1 while also continuing to increase our resilience. Our operating strength and the cushion in our large loss budget of around EUR 140 million make us optimistic about the third quarter and the remainder of the year, despite the forthcoming hurricane season: we are raising our Group net income forecast for 2025 from more than EUR 2.1 billion to roughly EUR 2.3 billion.”

The insurance service result increased by 11 percent to EUR 2.6 (2.3) billion. Following a first quarter that was hit by the highest losses from natural disasters in the Group’s history, large loss payments normalised to EUR 1,134 (750) million, below the pro rata budget for the period of EUR 1,273 million. At EUR 624 million, the forest fires in California were the largest single loss. Other large losses from natural disasters included the earthquake in Myanmar (EUR 59 million) and the tornadoes in the US Midwest (EUR 50 million). All in all, man-made large losses amounted to EUR 369 million, while large losses from natural disasters totalled EUR 764 million. The combined ratio improved to 90.7 (91.2) percent.

The net insurance financial and investment result before currency effects improved to EUR 848 (784) million. Operating profit (EBIT) climbed 14 percent to EUR 2.9 (2.5) billion. The Solvency 2 ratio as at 30 June 2025 was 224 percent (31 March 2025: 229 percent).

Corporate & Specialty Division: revenue and net income up substantially

Adjusted for currency effects, the Corporate & Specialty Division lifted its insurance revenue by 8 percent year-on-year in the first half of the year (7 percent in nominal terms) to EUR 5.1 (4.8) billion. All lines contributed to the growth, which was primarily driven by new business. The insurance service result remained stable at EUR 430 (429) million. Large loss payments amounted to EUR 142 (128) million, undershooting the pro rata budget recognised for the period by a clear EUR 111 million. The combined ratio amounted to 91.6 (91.1) percent, within expectations for a figure of less than 92 percent for the full year. The net insurance financial and investment result before currency effects benefited from higher investment volumes and an increase in current interest income, climbing to EUR 99 (68) million. Operating profit (EBIT) rose by 24 percent to EUR 377 (305) million, while the division’s contribution to Group net income was up 23 percent at EUR 274 (223) million.

Retail International: strong rise in net income

Adjusted for currency effects, the Retail International Division lifted its insurance revenue by 9 percent year-on-year in the first half of the year (2 percent in nominal terms) to EUR 4.7 (4.6) billion. This positive trend was mainly due to organic growth in Poland and to the motor vehicle business in Mexico. The combined ratio improved to 90.8 (92.4) percent, benefiting from optimisations made in all markets. The insurance service result increased by 24 percent to EUR 478 (385) million. The net insurance financial and investment result before currency effects rose to EUR 237 (200) million. Operating profit (EBIT) climbed 24 percent to EUR 525 (424) million, largely on the back of improvements in Poland and Türkiye. The division’s contribution to Group net income rose by 49 percent to EUR 334 (224) million. This figure also includes the minority interest in the net income of the Polish subsidiaries Warta and TU Europa, which is already being reported in the division’s net income in financial year 2025 following the termination of the strategic partnership with Meiji Yasuda Life Insurance.

Retail Germany: stable net income

H1 insurance revenue in the Retail Germany Division amounted to EUR 1.7 (1.8) billion, largely due to the partnership with Targobank that will expire as at the end of 2025. The insurance service result increased to EUR 190 (144) million on the back of profitability enhancement measures and lower frequency losses in the motor vehicle business. The combined ratio improved to 90.6 (99.7) percent. The net insurance financial and investment result before currency effects rose to EUR 112 (36) million. Operating profit was EUR 131 (145) million, while the contribution to Group net income rose slightly to EUR 84 (82) million.

Reinsurance Division: increase in operating profit and Group net income

Adjusted for currency effects, the Reinsurance Division lifted its insurance revenue by 4 percent year-on-year in the first half of the year (3 percent in nominal terms) to EUR 13.3 (12.9) billion. The insurance service result was stable at EUR 1.4 (1.4) billion. The net insurance financial and investment result before currency effects amounted to EUR 396 (528) million. Operating profit (EBIT) grew 6 percent to EUR 1.8 (1.7) billion, while the division’s contribution to Group net income rose 13 percent to EUR 662 (585) million.

Insurance revenue in the Property/Casualty Reinsurance segment was up 5 percent to EUR 9.5 (9.1) billion due to new business and ongoing satisfactory pricing levels. Large loss payments, which were driven by the forest fires in California, amounted to EUR 976 (567) million, slightly above the pro rata budget for the period of EUR 935 million. Other large losses included the fire at an oil refinery in Texas, the earthquake in Myanmar and tornadoes in the US Midwest. The insurance service result increased to EUR 975 (963) million, since the positive business performance more than offset the higher large loss payments and conservative reserve recognition policy. The combined ratio was 88.4 (87.8) percent. The net insurance financial and investment result before currency effects was EUR 279 (396) million. Operating profit (EBIT) rose 12 percent to EUR 1.3 (1.2) billion.

Insurance revenue in the Life/Health Reinsurance segment remained stable at EUR 3.8 (3.8) billion. At EUR 445 (448) million, the insurance service result is on course to hit the full-year target of more than EUR 875 million. The net insurance financial and investment result before currency effects amounted to EUR 117 (131) million, while operating profit (EBIT) was EUR 466 (497) million.

Full-year forecast raised following record H1 net income

After generating record net income for the first half of the year, the Talanx Group is raising its net income forecast for financial year 2025 from more than EUR 2.1 billion to roughly EUR 2.3 billion. The Group also expects a return on equity of approximately 18 percent.

As usual, targets are subject to the proviso that no turbulence occurs on the currency and capital markets, and that large losses remain in line with expectations. The current geopolitical and macroeconomic situation is an additional source of uncertainty.